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InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

The market continued its decline this month, and there's no denying that it hurts. Maybe that's why Fools are so focused on optimism and consistency in investing. The market goes up more than it goes down, after all!

Today, I am covering my top three semiconductor stocks to buy now. I believe semiconductor stocks are the new oil, and all three of these stocks are buys at these levels and lower for long-term holds.

Apple's (NASDAQ: AAPL) annual Worldwide Developers Conference (WWDC) is underway for 2022, and the company has announced several new software enhancements for its users. One announcement in particular is of interest to Apple shareholders: the new M2 chip, an update to the M1 that

The Nasdaq-100 technology index is officially trading in a bear market, having fallen 25% from its all-time high. The decline has been driven by much steeper losses in individual tech stocks, even those that are typically considered high quality because of their strong growth or

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

For the first time in its history, graphics processing unit (GPU) manufacturer Nvidia (NASDAQ: NVDA) generated a higher quarterly revenue in its data center segment than in its gaming division. While some investors may not truly understand the significance, I believe this is a ma

It has been a trying time for investors across the technology space, even those holding shares of best-in-class, profitable companies like Nvidia (NASDAQ: NVDA). Nvidia pioneered the use of graphics processing units (GPUs), and not just for high-end gaming and visualization. It a

Metaverse is the new buzzword in the tech space. Chip giant Nvidia (NVDA) defines the metaverse as “a shared virtual 3D world, or worlds, that are interactive, immersive, and collaborative.” The Metaverse will be powered by technologies like virtual reality, artificial intelligence (AI), and augmented reality (AR).

The term gained even more attention last year when social media giant Facebook changed its name to Meta Platforms (FB) to reflect the company’s vision to move “beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology.”

Considering this backdrop, we used the TipRanks Stock Comparison tool to place AMD, Nvidia, and Unity Software against each other, and select the metaverse stock that could offer attractive returns.

Advanced Micro Devices (NASDAQ: AMD)

The building of the metaverse will require advanced processors, and semiconductor chip makers like AMD are well-positioned to address this demand.

AMD recently announced its collaboration with Meta Platforms as an ecosystem partner to build a Metaverse-ready radio access unit (or RAN). The company’s radio chip – Xilinx Zynq UltraScale RFSoC, will be used in the Meta’s Evenstar radio units. AMD completed the $49 billion acquisition of Xilinx in February 2022. This acquisition enhanced AMD’s portfolio by adding Xilinx’s FPGA (Field Programmable Gate Array)-based technologies.  

Further, AMD recently acquired Pensando Systems for $1.9 billion. This deal expands AMD’s data center solutions capabilities with the addition of Pensando’s high-performance data processing unit and software stack.

Last month, AMD raised its full-year 2022 revenue guidance to reflect the addition of Xilinx, strong server processor revenue, and higher revenue from semi-custom chips that are used in game consoles.

Recently, Piper Sandler analyst Harsh Kumar upgraded AMD to a Buy from Hold and increased the price target to $140 from $90 as his fears of a slowing PC market and Xilinx acquisition being a drag on earnings have not played out as expected.

Harsh sees the pullback in the stock as a good buying opportunity based on mid-to-long-term catalysts like strong server trends, robust semi-custom trends, commercial PC growth offsetting consumer PC exposure, and Xilinx acquisition.

Overall, the Street has a Moderate Buy consensus rating on AMD based on 13 Buys and nine Holds. At $134.47, the average AMD price target implies 27.28% upside potential over the next 12 months. Shares are down nearly 27% year-to-date.

Nvidia (NASDAQ: NVDA)

Nvidia, which has a dominant position in the GPU (Graphics Processing Unit) market, is helping customers build the metaverse through its Omniverse platform. Nvidia’s Omniverse is a simulation and collaboration platform that connects 3D worlds into a shared virtual universe.

Omniverse platform is now being used in many industries for several applications, including design collaboration and in creating digital twins (like simulations of real-world buildings and factories). For instance, German automaker BMW Group is using Nvidia's Omniverse to create a digital twin of an entire factory.

Overall, demand for Nvidia’s graphics chips in gaming, data centers, and metaverse is expected to drive its long-term growth. The company is also geared up to launch its first data center CPU in 2023.

Following Los Alamos National Laboratory’s recent announcement about a next-generation supercomputer called Venado at the ISC22 conference, Wells Fargo analyst Aaron Rakers stated that it was “another massive next-gen supercomputer deployment” to use Nvidia's upcoming Arm-based Grace Superchip CPUs (Central Processing Units) along with the company's Grace Hopper Superchips.

Rakers reaffirmed a Buy rating on Nvidia stock with a price target of $250.

Overall, Nvidia scores a Strong Buy consensus rating based on 27 Buys and five Holds. The average Nvidia price target of $271.41 implies 44.47% upside potential from current levels.  Shares are down 36% so far this year.

Unity Software (NYSE: U)

Unity Software’s platform offers software solutions to create, run and monetize interactive real-time 2D and 3D content for mobile phones, tablets, PCs, game consoles, and augmented and virtual reality devices. The company claims that over half of the top 1,000 mobile games on the Apple App Store and Google Play have been created using its platform.

Several companies are using Unity’s software to create digital twins, which refers to virtual copies of real-life asset, physical site, or even a person. 

Unity’s Q1 results were impacted by an internal error that resulted in reduced accuracy of a tool. Also, the company lost the value of a portion of its training data as it ingested bad data from a large customer. These headwinds impacted Unity's monetization business and offset the strong momentum in the company’s Create Solutions division as well as full-year outlook.

William Blair analyst Dylan Becker noted that Unity’s management is taking the necessary steps to address the internal error in an expedited manner, and he considers these headwinds as temporary.   

Becker continues to believe that Unity is poised to capitalize on several industry tailwinds leading to a large and growing market opportunity, which should support sustainable revenue growth of over 30% for the next several years.

Overall, the Street has a Strong Buy consensus rating on Unity stock based on 11 Buys and three Holds. The average Unity Software price target of $76 implies upside potential of 77.49% from current levels. Shares have declined 70% year-to-date.

Conclusion

AMD, Nvidia, and Unity Software are expected to enjoy strong demand as they have the tools that will help enterprises build out the metaverse. However, given the significant plunge in Unity stock, several analysts see it as a lucrative opportunity to build a position in this pick-and-shovel play for the metaverse and ensure higher returns.  

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Amazon's stock split may provide some solace to shareholders who have seen the e-commerce giant's shares battered this year.

Amazon's stock split may provide some solace to shareholders who have seen the e-commerce giant's shares battered this year.

Santa Clara, CA-based technology giant Nvidia Corporation (NASDAQ: NVDA) has made significant strides in the artificial intelligence (AI) space. Besides solidifying its footprint in the designing of graphics processing units (GPUs) and application programming interfaces (APIs) for data science, the company has emerged as a major player in the burgeoning semiconductor manufacturing industry.

Recently, the company reported impressive first-quarter results. In the quarter, its earnings stood at $1.36 per share, up 49% year-over-year, and revenues climbed 46% from the year-ago quarter to $8.29 billion.

According to TipRanks, shares of Nvidia have declined more than 37% year-to-date and 12.3% in the last three months. Taking this into account, let’s discuss some of Nvidia's major risk factors.

Risk Factors 

As per the TipRanks Risk Factors tool, Nvidia’s top risk categories are Finance and Corporate and Tech and Innovation, which contribute five risks each to the total 24 risks identified for the stock.

Under the Finance and Corporate risk category, Nvidia informs its stakeholders that risks arising from share price and shareholder rights are the major headwinds for the company.

The company highlights that the activities of various shareholder advocacy groups, certain institutional investors and investment funds are focused on the company’s ESG practices. Further, the company opines that any deviation from the company’s stated ESG standards can materially impact its business operations.

Meanwhile, the company’s primary risk within the Tech and Innovation category remains Innovation/ R&D.

Nvidia underlines that it operates in a dynamic industry and any slacking in terms of innovation, design or new products may hurt its revenue and financial condition. Further, the company says, any massive disruption or technological advancement for which it did not prepare adequately can impact its business.

Stock Rating

Recently, Wells Fargo analyst Aaron Rakers reiterated a Buy rating on the stock with a price target of $250, which implies upside potential of 33.6% from current levels.

Overall, the Street has a Strong Buy consensus rating on the stock based on 27 Buys and five Hold. NVDA's average price target of $271.41 implies upside potential of 45% from current levels. Shares have gained 6.3% over the past year.

Conclusion

Nvidia’s primary risk factors have the ability to hurt its operations. However, its fundamentals remain solid as it continues to thrive in various businesses.

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In this podcast, Motley Fool senior analysts Emily Flippen and Maria Gallagher discuss:

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Today's video focuses on Nvidia (NASDAQ: NVDA) and recent updates on its main product, graphic processing units (GPUs). Valve recently released its monthly Steam hardware survey, which showed consumer growth for Nvidia's 3000 series GPUs. Unfortunately, Jon Peddie Research report

What happened Shares of some of the world's biggest technology companies languished on Friday after several days of positive gains for the market. Semiconductor specialist Nvidia (NASDAQ: NVDA) was down as much as 5.5%, iPhone maker Apple (NASDAQ: AAPL) was off by as much as 4.5%

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

In this podcast, Motley Fool analyst Bill Mann discusses:

Wall Street closed sharply higher on Thursday in a choppy session, powered by mega-cap growth stocks. Markets rebounded from an early session drop, arising out of Fed Vice Chair Lael Brainard’s hawkish comments about continuing interest rate hikes. The recovery was led by